Insurance Glossary

Insurance Term - Renewal

The automatic re-establishment of in-force status effected by the payment of another premium is known as renewal. In other words, the issuance of a new policy or the continuation of a current policy that is effective once the old policy’s plan year ends is termed as renewal. Health insurance policies are usually annual contracts. At the end of the policy period, the policy has to be renewed by the policyholders. But renewing a contract of insurance is at the discretion of the insurer/policyholder. There should be continuous renewal of the policies. If there is a break in insurance, then in the event of a contingency, the insured would lose the benefits of insurance.

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